The 12 unions, including the two largest, Unison and the RCN, have agreed to an 8 per cent rise over three years. The deal involves a clause that means the figures will be renegotiated should inflation rise any further.
Unite is still not backing the deal however, and is balloting its members on industrial action.
Healthcare workers will receive a 2.75 per cent rise in the first year, with 2.54 per cent in year two and 2.5 per cent in the third.
It also establishes for all NHS staff a new minimum wage of £6.77 an hour. Those on the lowest wage will receive an increase of 5.7 per cent.
Mike Jackson, UNISON's lead negotiator, said: ‘We know that many NHS health workers are struggling to make ends meet and we want to make sure that hard-working staff get the 2.75 per cent pay rise in their pay packets as soon as possible.
‘The agreement includes a re-opener clause which we will have no hesitation in triggering if inflation continues to spiral. ‘We will monitor inflation closely and go back to the pay review body to re-negotiate the deal for 2009/10 if we need to.'